BY COMFORT OGBONNA

Swiss bank Vontobel reported a solid performance for the 2025 financial year, posting a net profit of 280 million Swiss francs ($361 million), representing a 5% increase from the previous year and comfortably exceeding the company’s own consensus forecast of 242 million francs.

The results highlight the bank’s ability to deliver earnings growth despite a challenging market environment marked by uneven client activity and persistent volatility across global financial markets.

The bank recorded total net new money inflows of 4.2 billion Swiss francs during the year. This growth was driven primarily by strong demand from private clients, who added 5.8 billion francs, reflecting continued confidence in Vontobel’s wealth management offerings and advisory services. However, this positive momentum was partly offset by the institutional segment, which saw net outflows of 1.6 billion francs following a prolonged period of client withdrawals. The contrasting performance between the two segments underscores the differing dynamics currently shaping private and institutional investment behavior.

Overall net new money growth for 2025 stood at 1.8%, falling short of the bank’s medium-term target range of 4% to 6% set for its financial cycle, which does not have a fixed end date. While the figure points to slower-than-expected asset growth, management indicated that ongoing strategic initiatives and a focus on core strengths are expected to support improved momentum over time.

In a separate announcement, Vontobel said Thomas Hirschi, formerly the head of banking at Swiss financial market regulator FINMA, will join the bank as chief risk officer in March. His appointment is seen as a strategic move to further strengthen the bank’s risk management framework and regulatory expertise at a time when oversight and compliance requirements remain in sharp focus across the global banking sector.